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» Economics » Keynesianismus » Topics begins with M » Marginal note consumer ratio

Page modified: Wednesday, July 13, 2011 03:53:19

The marginal note consumer ratio (also: marginal note consumer inclination, border inclination to the consumption), briefly c_Y, describes the portion of the income that the private households of a national economy at the next additional (marginal) income unit consumes, i.e. do not save. It is fundamental for the development of the Keynesiani total model and the multiplicator.

The private consumer demand C leaves itself general to Y then as C = C_ {autonomously} + c_Y \ cdot to describe.

The marginal note consumer inclination is the derivative of the consumption C after the income Y.

C_Y= \ frac {DC} {dY}

After the fundamental-psychological law C_Y must be more largely as 0 and smaller than 1. It applies thus:

0 < C_Y < 1 \!

The marginal note consumer inclination results from the difference of 1 and the marginal savings inclination S_Y. That is, that money, which is not spent on the consumption is saved.

C_Y = 1 - S_Y \!

The marginal note investment ratio can similar be defined for the investments.

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» Marginal note consumer ratio
» Marginal note rate of saving

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